FireEye Gets Big Upgrade: What's Next?
Mike Paulenoff | Mar 23, 2017 01:07PM ET
We can make the case that FireEye (NASDAQ:FEYE) has been carving out a huge base formation for the past 15 months, in the aftermath of a three-year bear phase off of its all-time high at 97.35.
That said, FEYE still has plenty of work to do prior to completing the base. For starters, the price structure needs to claw its way above heavy resistance, lodged between 12.90 and 13.60. If that's accomplished, it will point toward a run at 16-17 as the base approaches completion -- with upside potential eventually to 24-26.
h3 Goldman's Plug/h3From a near-term perspective, Thursday's upgrade by Goldman Sachs (NYSE:GS) to Buy from Sell, with a target of 15 (from 10) has left behind a substantial up-gap from 11.49 to 12.28.
Given the extremely heavy resistance lodged above 12.90, my sense is to give FireEye some time to back and fill some -- if not all -- of the gap prior to entering a new long position for our Model Portfolio.
Key, near-term support resides around 11, which must contain any forthcoming acute weakness after filling the gap (11.49).
For now, FEYE looks extremely promising, but as is usually my style, I have no desire to chase Thursday's Goldman-inspired strength.
Last is 12.42/43
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